1 | Highlights
2 | Purchases by sector
05
Highlights of purchases made
by breweries in Europe (EU-27)
21.8 billion euro was spent on goods and services
in 2010 by breweries from the EU-27.
Most money was spent in the services sector,
agriculture and the packaging industry. This
confirms the pattern found in our earlier studies.
Expenditure fell by 1.5 billion euro compared to 2008
(23.3 billion euro), due to lower beer production.
Compared to 2008, the European breweries spent
a relatively larger part of their gross turnover on
purchases of goods and services.
As a result of this, the percentage decrease in the
value added of the breweries was larger than the
decrease in the value of their purchases
(-6% versus -9%).
In 2010, various sectors provided goods and services to
facilitate the production of 383 million hectolitres of beer
within the European Union. These goods and services range
from barley, malt, hops and packaging to transportation and
a variety of industrial products and services.
Based on information on purchase management by
individual breweries, we estimate that in 2010 the
European brewing sector purchased goods and services
from supplying sectors with a value of 21.8 billion euro
(compared to 23.3 billion euro in 2008, 21.3 billion
euro in 2009). The percentage decrease in the value of
purchases (-6%) reflects the percentage decrease in
volume of beer produced in Europe. In the same period,
the value added by the brewing sector itself decreased by
9 percent, from 11.57 billion euro in 2008 to 10.53 billion
euro in 2010. This means that in 2010 breweries spent a
relatively greater percentage of their gross turnover on the
purchases of goods and services than they did in 2008.
The explanation for this is that the price at which breweries
can sell their beer to retailers and the hospitality sectors
developed differently to the price at which they must
purchase goods and services.
Breweries do not make all purchases in their own countries,
some of these goods and services are imported. In our
calculations of the other economic impacts of beer (see
the previous three chapters), imported purchases have
not been taken into account. This is because we have
no information on the country of origin of these imports
(within or outside the EU). It does however mean that the
economic impact of the brewing sector would be even
greater than that calculated in this study if imported goods
and services were taken into account.
›
Graph 5.1. / 2010 purchases of goods and services
in billion euro in EU
Source : Ernst & Young calculation (2011)
‹
(see Annex III for an explanation on methodology).
0,0
5,0
10,0
15,0
20,0
25,0
Agriculture
Utilities
Packaging industry
Equipment and other
industrial activities
Transport and storage
Media and marketing
Services and other
39
Purchases made by breweries